So the RBNZ lifted the OCR this morning, no surprises there.

But the really good news is that while future increases are certain to occur, the RBNZ believe the pace of increases will be much more moderate than it has suggested in the past.

For the moment that means the interest rate your bank charges you is also unlikely to increase at a rapid pace. And if you’ve been smart enough to continue paying your mortgage as if you were still in 2008 (ie at 9% rather than the 6% available today) then you’ll be doing some serious damage to the loan size and in turn saving yourself a bucket load of interest in the long term.

 

About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

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